In this article, we discuss the 5 best biotech penny stocks to buy now. If you want to read about some more biotech penny stocks, click here to read 10 Best Biotech Penny Stocks To Buy Now.
5. NuCana plc (NASDAQ:NCNA)
Number of Hedge Fund Holders: 4
Share Price (as of June 17): $0.64
NuCana plc (NASDAQ:NCNA) is a British biotech firm which develops drug therapies to treat various forms of cancer. It uses its ProTide technology to convert some of the most commonly-used chemotherapy drugs into safer and more effective medicines. It has drug candidates in clinical phase 1 and 2 for colorectal cancer and solid tumors, among others.
Truist analyst Robyn Karnauskas on April 13 lowered the firm’s price target on NuCana plc (NASDAQ:NCNA) to $6 from $22 and maintained a ‘Buy’ rating on the company shares. The analyst adjusted her model to remove the firm’s Acelarin drug for biliary tract cancer, after the discontinuation of its phase 3 trial. She revised her peak adjusted revenue estimate to $160 million from $0.9 billion. Despite this setback, NuCana plc’s (NASDAQ:NCNA) ProTide platform and other drug candidates position it well heading into the future.
A detailed examination of the 900+ elite hedge funds in the Q1 database of Insider Monkey showed that 4 hedge funds were long NuCana plc (NASDAQ:NCNA), as compared to 6 hedge funds a quarter earlier. With an $878,000 position, Opaleye Management was the firm’s most prominent Q1 shareholder.
4. Minerva Neurosciences, Inc. (NASDAQ:NERV)
Number of Hedge Fund Holders: 6
Share Price (as of June 17): $0.40
Minerva Neurosciences, Inc. (NASDAQ:NERV) deals in the development of drug therapies for the treatment of central nervous system (CNS) diseases, which includes its lead product roluperidone for the treatment of schizophrenia, and MIN-301 for the treatment of Parkinson’s disease. As of June 17, shares of Minerva Neurosciences, Inc. (NASDAQ:NERV) trade on the Nasdaq stock exchange at $0.40.
H.C. Wainwright analyst Douglas Tsao in March reiterated a ‘Buy’ rating on Minerva Neurosciences, Inc. (NASDAQ:NERV) shares, and lowered the price target to $5 from $10. He noted that the company’s story is relatively unchanged, as it is preparing to meet with FDA for a Type C meeting to discuss the evidence for roluperidone monotherapy in treating the negative symptoms for schizophrenia, and plans to file a new drug application in the first half of this year.
6 out of the 912 hedge funds tracked by Insider Monkey owned stakes worth $1.93 million in Minerva Neurosciences, Inc. (NASDAQ:NERV) at the end of March. This shows growing investor confidence over the previous quarter, where 5 hedge funds were stakeholders in the biotech firm. Edging out Renaissance Technologies and Millennium Management, Steven Boyd’s Armistice Capital was the top shareholder of Minerva Neurosciences, Inc. (NASDAQ:NERV) in the first quarter, with a position worth $850,000.
3. Atossa Therapeutics, Inc. (NASDAQ:ATOS)
Number of Hedge Fund Holders: 7
Share Price (as of June 17): $1.04
Atossa Therapeutics, Inc. (NASDAQ:ATOS) is based in Seattle, Washington, and focuses on the development of medicines to treat cancer and infectious diseases. Its lead candidate is Endoxifen, which is the main ingredient of FDA-approved drug Tamoxifen which has been used to treat breast cancer for decades. Atossa Therapeutics, Inc. (NASDAQ:ATOS) aims to deliver Endoxifen directly to the body and bypass liver metabolism, a process which potentially yields quicker and better results than the traditional Tamoxifen drug. The company is also working on an inhalation therapy named AT-H201, which is intended for use by moderate to severe hospitalized patients of COVID-19, as well as for patients who suffer from post-Covid lung disease.
In March, Atossa Therapeutics, Inc. (NASDAQ:ATOS) was issued a new patent from the U.S. Patent and Trademark office, further strengthening its intellectual property surrounding the Endoxifen drug. For the first quarter, the company reported earnings per share of -$0.04, beating market forecasts by $0.02.
With a $4.82 million stake, D E Shaw was the most prominent shareholder of Atossa Therapeutics, Inc. (NASDAQ:ATOS) in the first quarter of 2022. In total, 7 hedge funds were long on the company shares, with aggregate positions worth $10.56 million.
2. Ardelyx, Inc. (NASDAQ:ARDX)
Number of Hedge Fund Holders: 8
Share Price (as of June 17): $0.57
Ardelyx, Inc. (NASDAQ:ARDX) is one of the best biotech penny stocks to buy now. The Massachusetts-based firm already has an FDA approved drug available for sale in the United States and Canada, called Ibsrela (tenapanor) which is used for the treatment of adults with irritable bowel syndrome with constipation. It also has a drug candidate for the treatment of patients with chronic kidney disease (CKD) undergoing dialysis, called Xphoza. This product has completed three phase 3 studies that prove its efficacy in helping patients, and stands a decent chance of getting FDA approval as well after a spate of setbacks and reviews currently in progress.
Jefferies analyst Chris Howerton in March called Ardelyx, Inc. (NASDAQ:ARDX) a “stand out” name in the biotech sector, and upgraded it to ‘Buy’ from ‘Hold’ with a price target of $5, up from $1. He noted that the firm’s Ibsrela drug has a commercial opportunity which is validated by competitors Linzess and Trulance, which made $1 billion and $100 million in 2021 sales respectively. He estimates peak sales for Ibsrela to be near the $300 million mark.
On April 25, Piper Sandler analyst Christopher Raymond maintained a ‘Neutral’ rating on Ardelyx, Inc. (NASDAQ:ARDX) shares with a $4 price target. He notes that the convening of an advisory committee to review the Xphoza drug in response to the company’s appeal of FDA’s CRL (complete response letter) is “a clear positive” for Ardelyx, Inc. (NASDAQ:ARDX), and the chances of a reversal of the CRL now stand much higher.
1. OPKO Health Inc. (NYSE:OPK)
Number of Hedge Fund Holders: 19
Share Price (as of June 17): $2.42
OPKO Health Inc. (NYSE:OPK) deals in the diagnostics and pharmaceuticals business, with operations in 9 countries around the globe. Its diagnostics arm BioReference Laboratories had COVID-19 testing agreements with all major sports organizations in the United States, including the NBA and NFL, among others. This allowed the company to pull in $1.87 billion in revenue for 2021, a 30.2% jump from 2020 levels. On May 17, OPKO Health Inc. (NYSE:OPK) CEO and chairman Phillip Frost purchased 200,000 shares of the firm at a value of around $600,000, driving shares up 4% for the day. As of June 17, shares trade at $2.42, and have lost 50.91% in the year to date on account of the broader macro uncertainty, allowing a good entry point for long-term investors.
On May 10, Piper Sandler analyst Edward Tenthoff lowered the firm’s price target on OPKO Health Inc. (NYSE:OPK) to $5 from $6 and kept an ‘Overweight’ rating on the company shares. The analyst attributed the price target drop to lower service revenues and the ModeX acquisition. In May, OPKO acquired privately-held ModeX Therapeutics for $300 million, enhancing its oncology and infectious diseases portfolio.
Investors were seen piling into the Florida-based biotech firm. Out of all the hedge funds tracked by Insider Monkey, 19 reported ownership of stakes in OPKO Health Inc. (NYSE:OPK) at the end of the first quarter, with a combined value of $40.44 million. This is in comparison to 16 hedge funds in the previous quarter. Its leading Q1 shareholder was D E Shaw, with a nearly $18.5 million position.
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